Accessory Dwelling Market


To determine the market size of the accessory dwelling unit (ADU) market in the US as well as the key players currently operating in the market. This project is to help inform your business presentation.

Early Findings

  • The accessory dwelling market is currently experiencing unprecedented growth driven by recent changes to local and state zoning laws.
  • The state of California currently accounts for a major share of this growth. According to recent reports, the ADU market in Los Angeles California is estimated to have expanded 30 times its previous size in just two years.
  • According to a recent article by the Association of Realtors (REA), there's currently no definitive estimate on the number of AUDs currently present in the US, but reports have placed this figure at 50,000 for AUDs with legal permits and as many as 3 million AUDs without a permit.
  • There are currently no publicly available reports that state the market size for the accessory dwelling market. However, it is possible to infer from some of the data already found.
  • The CEO of Prefab ADU, a notable manufacturer of prefabricated ADU, stated that the most popular ADU model, a 288-square-foot home, costs about $105,000 to install.
  • The total market size of the AUD market, which comprises of both new and old accessory dwelling units, can be directly estimated at $320.2 billion (3.05 million AUD units * $105,000). This is most certainly a gross valuation of the market.

Proposed next steps:

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